News Releases

Combined Asset Management strength to benefit clients

TORONTO and VANCOUVER, May 1, 2008 — Royal Bank
of Canada (RY on TSX and NYSE) today announced completion
of its acquisition of Phillips, Hager & North Investment
Management Ltd. (PH&N). The acquisition creates the largest
retail mutual fund company in Canada with more than $105 billion
in mutual fund assets under management as at
March 31, 2008.

In addition to forming Canada's largest retail mutual fund
company, the combination of PH&N's Discretionary Private
Client business and RBC Private Counsel creates one of the
largest private client investment counselling businesses in
Canada, with market strengths coast-to-coast, and notably
in Western Canada. RBC also becomes one of the top five managers
in the Canadian institutional market for defined benefit and
defined contribution pension plans, and a leading provider
to endowments and foundations.

"By leveraging the respective strengths of RBC and PH&N,
we will be in a position to better serve the needs of our
institutional, discretionary and mutual fund clients,"
said John Montalbano, who became chief executive officer of
RBC Asset Management today. In this role, which was previously
held by George Lewis, Group Head of RBC Wealth Management,
Mr. Montalbano will lead the combined asset management business.

The transition is expected to create significant benefits
for clients in terms of advice, expertise and investment options.
Both the RBC Asset Management and PH&N brands will continue
within the combined organization.

RBC AM provides a broad range of investment
services to investors through mutual funds, pooled funds and
separately managed portfolios, and has over $92 billion in
assets under management. RBC AM received the Lipper Award
for "Best Overall Fund Group" in Canada for the
second consecutive year in 2008. Four individual funds also
won Lipper awards this year. For further information regarding
RBC AM, visit www.rbcam.com.

Founded in Vancouver in 1964 and headquartered
there, Phillips, Hager & North Investment Management Ltd.
employs 300 staff and has almost $68 billion of assets under
management. PH&N was presented with seven Lipper awards
for 2008, including - for the second year in a row - Best
Bond Fund Family. For further information regarding PH&N,
visit www.phn.com.

Founded in 1983, Voyageur Asset Management Inc. is an SEC-registered
investment adviser headquartered in Minneapolis, MN. It is
an institutional asset management company with US$34 billion
in AUM, offering equity and fixed income investment strategies.

Global Asset Management is part of RBC Wealth Management,
which directly serves affluent and high net worth clients
in Canada, the United States, Latin America, Europe and Asia,
and provides asset management and trust products and services
directly and through RBC partners and third-party distributors.
RBC Wealth Management has nearly $500 billion of assets under
administration, more than
$230 billion of assets under management, and more than 3,600
financial consultants, advisors, private bankers and trust
officers.